FCPT Q1 2026 Earnings Call Transcript

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DATE

Thursday, April 30, 2026 astatine 12 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — William Howard Lenehan

• Chief Financial Officer — Patrick L. Wernig

• Chief Investment Officer — Joshua Zhang

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Full Conference Call Transcript

William Howard Lenehan: Q1 marked a continuation of the momentum from 2025 and a beardown commencement to 2026. AFFO per stock grew by 3.4% versus the prior-year period, continuing our absorption connected dependable risk-adjusted growth. During Q1, we acquired $26 cardinal of nett lease properties astatine a 6.8% blended currency headdress rate, equivalent to a 7.3% GAAP headdress rate. This is marginally little measurement versus the commencement of 2025, but I would stress we are seeing a batch of charismatic opportunities and consciousness bully astir the spot of our pipeline. Seasonally, we thin to spot less deals adjacent successful Q1 versus aboriginal successful the year, and Q2 is shaping up that mode truthful far.

Over the past 12 months, we person acquired $288 cardinal of properties. We are besides excited to person closed connected a caller $200 cardinal word indebtedness with seven-year tenor earlier this month. The word indebtedness all-in complaint is 4.9%, which represents 200 ground points of dispersed to humanities acquisition yields. We volition beryllium capable to put that wealth accretively. Our rent sum successful Q1 was 5.1x for the bulk of our portfolio that reports this figure. This remains amongst the strongest sum wrong the nett lease industry. The rent sum fig for our Garden properties specifically is 5.8x. We person been precise consistent, remaining supra a precise lofty 5x for the past 3 years.

As a reminder, the archetypal tranche of lease maturities is owed to nonstop america hold notices by October. While we cannot cognize the result with certainty, barring a worldly alteration successful the operating show of lease sources, we would expect a precise precocious renewal percent for the spin-off portfolio successful the coming years. To that end, our largest brands, Olive Garden, LongHorn, and Chili's, proceed to beryllium leaders wrong the nett lease tenant universe. Most recently, Brinker reported Chili's same-store income maturation of 4% for the 4th ended March 2026 aft a 31% summation a twelvemonth ago. Olive Garden and LongHorn reported same-store income maturation of 3% and 7%, respectively, for the quarter.

Remarkable results for the 3 brands that correspond 40% to 47% of our portfolio rent combined. To bring that constituent home, I volition telephone retired a caller descent connected leafage 7 of our capitalist platform that shows the beardown outperformance of our publically traded tenants versus the generic all-restaurant index. The cardinal takeaway is portfolio operation is highly important. By being selective with our tenant partners, we are gathering what we judge is simply a fortress portfolio ceramic by brick. Our pb edifice tenants look to beryllium taking marketplace stock and person not shown signs of slowing down. To that end, our portfolio has avoided immoderate of the much problematic lease sectors experiencing semipermanent macro headwinds.